MRCY stock falls 11% as Q4 EPS disappointment offsets $289.8M revenue, $23.6M above estimates.
Mercury Systems (MRCY) shares dropped 11% in pre-market trading after its fourth-quarter earnings per share missed expectations, despite reporting record sales of $289.8M. The figure rose 6.1% year-over-year and exceeded market estimates by $23.6M.
The aerospace and defense electronics firm’s gross margin declined, weighing on profitability. Analysts had anticipated stronger earnings performance, though revenue growth reflected solid demand in the sector. Prior-year Q4 revenue stood at $273.1M, with consensus estimates near $266.2M.
The earnings miss overshadowed the record bookings, triggering the stock’s decline ahead of the market open.